2020 To Bring Long-Awaited Relief To Freeport Investors
EWM Interactive | Dec 10, 2019 06:17AM ET
It’s been a rough couple of years for U.S.-based copper miner Freeport-McMoran (NYSE:FCX). The stock reached $20.25 a share in the first month of 2018. Now, in the last month of 2019, FCX is hovering around $12.10. Despite the significant recovery from as low as $8.43 in October, the stock is still down 40% since January 2018.
Can the recent two-month rally be trusted or is it just another short-lived recovery within the larger downtrend? With that question in mind, let’s put the daily chart of Freeport stock in an Elliott Wave context.
The daily chart above reveals the entire wave structure since the bottom at $3.52 in January 2016. It can be seen as a leading diagonal in wave I/A, followed by an (a)-(b)-(c) expanding flat correction in wave II/B. Together, these two parts – motive and corrective – form a complete 5-3 Elliott Wave cycle.
Freeport Stock Looks Promising Heading into 2020
Wave I/A ended at $17.06 in January 2017. Wave II/B occupies the rest of the chart as it took nearly three years to develop. The initial decline to $11.05 in wave (a) was followed by a simple a-b-c zigzag to a new high in wave (b). Wave (c) was a five-wave impulse, labeled 1-2-3-4-5, where wave 5 is an ending diagonal.
If this count is correct, the current recovery must be the beginning of wave III/C, which should be able to reach $21 and beyond. Another reason for optimism is the fact that wave (c) of II/B seems to have terminated shortly after touching the 61.8% Fibonacci level. All told, 2020 is shaping up to be a better year for Freeport-McMoran investors.
Original Post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.